Telecomunications Company Marketing Plan

BH Telecom

1. Executive Summary

BH Telecom is the leading telecom operator in Bosnia and Herzegovina, which provides
high-quality, cutting-edge services in telecommunications. The General Directorate of the
company is located in Sarajevo. The seven regional BH Telecom directorates are located on
the territory of the whole Bosnia and Herzegovina, having their main offices in Sarajevo,
Tuzla, Zenica, Mostar, Biha, Travnik, Brko and Gorade. The company also includes the
tenth biggest organizational unit in Bosnia and Herzegovina - Telecom Inenjering, with its
main office in Sarajevo.

It was established during the collapse of Yugoslavia in 1992 and was the first company in
Bosnia and Herzegovina to provide GSM, 3G, IPTV and many other services. It was a
government-owned corporation whose sole proprietor was Federation of Bosnia and
Herzegovina, but since 2004 it is listed as a public company with most stock still owned by
the government. Although stock owners have both governance as well as ownership rights,
the effect of such controlled distribution of capital is that company is effectively still directed
and managed by the government, but funds and small shareholders are enabled to earn money
on dividends and stock trading.

H Telecom Sarajevo enabled its BIHNET users to have access to Internet via public switched
telephone network, leased lines and ADSL access. In 2003 the company began with a major
introduction of broadband technology, so, accordingly, ADSL service was at disposal to users
in FBIH. In May 2013, BH Telecom started implementing LTE (4G) technology but it will
probably not be released before 2017.

Situation Analysis

Market Analysis

The total revenue generated in the telecommunications market of Bosnia and Herzegovina in
2015 amounted to 1.401 billion KM, representing an increase of 0.476% over the previous
year. The gross national product - GNP, BiH revenue of the telecommunications market in
2015 had a share of 4.91%. Fixed telephony services decreased and the number of users as

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well as the revenue. The segment of mobile telephony achieved the highest revenue in 2015,
and recorded revenue growth of 0.87%. Number of mobile users telephony has decreased in
comparison to the previous year. In the area of Internet services recorded an increase in the
number of users, to revenue as well as access speed. The stocktaking of the
telecommunications market the most significant data which give a picture of the situation on
the market telecommunications by types of services: fixed telephony, mobile telephony and
Internet.

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 PESTLE Analysis

The analysis of the political environment

Bosnia and Herzegovina is still characterized by a certain dose of political uncertainty as a

result of the conflict that took place in this region more than 20 years. There is a strong
influence of the international community to resolve the key political issues in Bosnia and
Herzegovina. The development of the rule of law and civil society cottage and a strong
influence on the party executive and legislative power. This environment is unfavorable for
the inflow of foreign investments and general business environment.

Analysis of the socioeconomic environment

Regardless of the ongoing economic reform and challenges, in the last decade, the per capita
income and living standards improved significantly in BiH. Real GDP per capita has
increased 32 percent during the decade up to 2012 years.

Bosnia and Herzegovina has a low level of direct and indirect taxes.

Load for social insurance in the normal border.

A large amount of time required to fulfill the commitments to the administration.

The responsibility for this inefficiency manifested is divided between institutions and
business entities in BiH.

In addition, institutions are responsible for the lack of speed and agility in carrying out their
tasks, but also for the lack of good and unspecialized regulations that prevent faster action
administration, while businesses are responsible for inertia and unwillingness to accept a new
computer advanced solutions.

Indirect Tax Administration is constantly working on improving its information system, is

currently being drafted new customs and VAT application; also is under construction project
for the introduction of online filing and payment of VAT.

Analysis of the technological environment

The modern era is characterized by extremely rapid changes in technology development. This
is particularly reflected in the development of information technology, so that many experts

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around the world are working everyday to improve and develop new products. Rapid
technological changes require additional education and lifelong learning. This era is
characterized by frequent and retraining of workers, to which workers are forced
administration due to rapid change. Bosnia and Herzegovina is characterized by slow
technological development which is the result of slow development or even stagnation of
economic development. There is insufficient involvement of competent personnel in the
restructuring of the productive and helpful capacity in all economic and social areas. The
deadlock in the technological and economic development in general leads to an outflow of
young and educated people abroad.

Bosnia and Herzegovina in the field of technology relies solely on imports achievements
izinostranstva.

During the former Yugoslavia, BiH had allocations for scientific research in the amount of
1% of GDP, which amounts to 87 million euros at the then prices.

Scientific research activity took place in large factories and universities.

Large and heavy plant is no more, and universities are numerous fragmented and without the
necessary concentration of knowledge to achieve human resource quality.

Allocations for scientific research activities have dropped to below 0.1% of the current
GDP.

Analysis of the legal environment

The legally-legal environment continues to be complex and problematic. In the previous

period were made some significant reforms but needs to do more. Bosnia and Herzegovina is
ranked as a penultimate country in the region (in front of Albania) for its legal environment
when it comes to the 10 areas important for the initiation and development work, and is on the
unenviable 79th place out of 189 surveyed countries worldwide. BiH is the worst in Europe
and among the worse countries in the region when it comes to ease of doing business, in
which it is being done almost nothing on the introduction of policies and practices that
facilitate business, which is alarming because it means that BiH does not recommend
investors as a country which should take up a job.

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Competition

There are 13 operators of telecommunications networks in the market of Bosnia and

Herzegovina:

1. BH Telecom d.d. Sarajevo

2. Telekom Srpske nove ere Banja Luka

3. HT d.o.o. Mostar

4. AirABA d.o.o. Sarajevo

5. ANEKS d.o.o. Banja Luka

6. Logosoft d.o.o. Sarajevo

7. EuroproNET Bosna d.o.o. Sarajevo

8. M&H Company d.o.o. Sarajevo

9. ELTA - KABEL d.o.o. Doboj

10. Telemach d.o.o. Sarajevo

11. Telrad Net d.o.o. Bijeljina

12. VoiptelNet d.o.o. Brko

13. DASTO SEMTEL d.o.o. Bijeljina

The market for billing and customer care has enjoyed solid growth for the past six years.
Companies that compete in this market were direct beneficiaries of this growth, as were
theirshareholders.

In addition, the majority of players (both large and small) are extending product service
portfolios to provide all services, i.e. Internet, mobile, cable, fixed and convergent services.
BH Telecom will compete in this market by providing high-value products and services at
competitive prices.

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Products Analysis

BH Telecom provides basic services such as mobile telephony, Internet, television, fixed
telephony, then the services of advanced Internet, LAN Host, network connectivity, ICT
services, Hosting and Cloud service, then offer calls with special tariff and humanitarian
phones and wholesale services.

On the previous graph it can be seen that the top-selling services of BH Telecom package of
three services: internet, fixed telephony and cable TV.

Customer Gap

These 5 gaps are involved in service gaps. These are as follows:-The five gaps that
organizations should measure manage and minimize:

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 Gap 1 is the distance between what customers expect and what managers think
theyexpect - Clearly survey research is a key way to narrow this gap.
Gap 2 is between management perception and the actual specification of the customer
experience Managers need to make sure the organization is defining the level of
servicethey believe is needed.
Gap 3 is from the experience specification to the delivery of the experience -
managersneed to audit the customer experience that their organization currently
delivers in order tomake sure it lives up to the spec.
Gap 4 is the gap between the delivery of the customer experience and what
iscommunicated to customers - All too often organizations exaggerate what will be
provided to customers, or discuss the best case rather than the likely case,
raisingcustomer expectations and harming customer perceptions.
Finally, Gap 5 is the gap between a customer's perception of the experience and
thecustomer's expectation of the service - Customers' expectations have been shaped
byword of mouth, their personal needs and their own past experiences. Routine
transactionsurveys after delivering the customer experience are important for an
organization tomeasure customer perceptions of service

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OBJECTIVES AND STRATEGY OF MARKETING COMMUNICATIONS

Identification and selection of the target group

Identification and segmentation of the market: the basic characteristics of the target
group

Identification of the market segmentation is the process that is of paramount importance for
the company and a particular marketing communications campaign. Identification and
selection of individual market segments is done on the basis of specified criteria. That market,
and all consumers in Bosnia and Herzegovina, the work on the basis of the same criteria,
which are: geographic location, demographic situation, occupation and social status,
psychographic determinants, and purchasing determination by product.

For full-market-coverage they are following the differentiated marketing strategy, under
which for each market segment there will be different marketing mix. For example the
charges for corporate plans are different from those of home plans and the feature are also
different on the both.

Geographical segmentation

National (English term "national") market of Bosnia and Herzegovina has one the most
important determinant to which is divided into individual segments. This determinant is
national (ethnic) affiliation of people living in some parts of our country. So the market of
Bosnia and Herzegovina geographic works on:

1. The part of the Federation of Bosnia and Herzegovina inhabited predominantly by ethnic
Croats (western part of Herzegovina, central Bosnia and Bosanska Posavina);

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2. A part of the Federation of Bosnia and Herzegovina inhabited predominantly by ethnic
Bosniaks (the central and northern part of the Herzegovina, Central, Western and EASTERN
part of Bosnia);

3. The Republic of Serbian and several municipalities in the Federation of Bosnia and
Herzegovina inhabited predominantly by ethnic Serbs.

Demographic segmentation

Demographic segmentation is done according to standardized international criteria. These

criteria are: gender, age, social status and occupation. On the basis of the discussed secondary
data - data from the Statistical Institute of the Federation of Bosnia and Herzegovina and the
Republic of Serbia, I recognized that for this company a very important age segmentation, so I
focused exclusively on it.

Proposal age segmentation:

1. Children (0-17 years old)

2. Young (18-29 years old)

3. Best age (30-45 years old)

4. Mature age (46-60 years old)

5. Seniors (61+ years of age)

Psychographic segmentation

For psychographic analysis I will use segments defined by previous demographic

segemnatcijom:

1. Children: A very young, inexperienced, mostly attending primary or secondary school,

living with parents (families or guardians) have clearly established attitudes and often are the
same very changeable, they have no income

2. Young: active or passive. Active young people studying or employed, ambitious, modern,
monitor trends, live alone or have only entered the marriage (young families, maximum one
child), have already formed opinions that are relatively variable, do not have or have lower
incomes

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3. Best years: Relatively young, mostly familiar people (families with children) employees,
they have a career, take care of the family, have clearly established positions that are very
poorly variable, have a high income.

4. Middle age: People at the peak of their career, which is in decline, familiar (and often have
extended families grandchildren) or living without children, have expressed formed opinions
that are almost invariably have high income.

5. Seniors: Older members of the community mostly pensioners, mostly grandparents and
sometimes live for yourself, attitudes have them fixed, their income is drastically reduced
(pensions), the health of their main preoccupation.

The selection of target groups for marketing and communication campaign

In selecting the target group for a marketing campaign, we decided to segment youth (16-30),
which I further segmented on young people 16 to 21 and from 21 to 30. Orientation to the
young gives me many more options than would be the case with a higher rating. Young
people are much more open to new things from the older members of the community. This is
why it is easier to influence their attitudes toward brands telecommunications companies (in
terms of ethnocentrism). Those customers who belong to the older age groups have long since
constructed attitudes and preferences for certain brands, so it is little possibility of changing
attitudes.

National campaign in addition to the central part of the Federation is focused on Herzegovina
and the Republic of Serbia, where BH Telecom is not a leader and where there is no such a
strong position. The fact that I had decided to segment youth will greatly help to change their
attitudes towards BH Telecom, based on ethnocentrism.

Marketing and communication goals

Marketing goals

1. Increase market share of BH in the part of the Federation of Bosnia and Herzegovina with
the majority Croatian population by 10%.

2. Maintain market share in the part of the Federation of Bosnia and Herzegovina where BH
Telecom is the leader.

3. To increase the market share of BH Telecom in the Republic of Serbia 5%

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4. Strengthen the brand on a national level.

Product positioning

The primary target audience of young people, I identified the following symbols by which we
define the position of the BH Telecom. Who uses services or products of BH Telecom is
urban, modern, and lead a dynamic life.

The secondary audience for this campaign is a segment of 'best year' and we believe that the
above symbols apply to them, with what would this segment need to recognize and core
values - tradition and quality, because BH Telecom was founded in 1997 and was the first
company in Bosnia and Herzegovina which provided services of GSM telephony.

Communication goals

My basic communication goal is closely connected with the way I positioned the product -
establish the image conscious segments of young people and increase their 'brand loyalty'
towards BH Telecom.

From this objective derive the following:

- Elimination of prejudice in the Republic of Serbian and the Federation of Bosnia and
Herzegovina (the part where the majority Croatian population).

- Strengthen existing brand loyalty with 'loyal buyers'

Komunikacijska strategija za izabrane ciljne grupe

Utvrivanje osnovne komunikacijske platforme (centralna tema/ideja)

Since I have been through the selection of target groups decided to segment youth (16-30),
which I further segmented into youth 16-21 and 21-30, the central communication ideas
should be addressed precisely this segment. Knowing all of these characteristics of young
people (psychological, sociological, etc.) through this campaign I want to incorporate BH
Telecom in to mind of young potential consumers, in a modern, passionate way. The
campaign is primarily intended for young people. It is general, which means there will not be
necessary linguistic or any other adaptation to different peoples of BiH. Execution is provided
in installments. From these characteristics it follows the uniqueness of the whole promotional
mix (posters, flyers, billboards and TV spots, radio spots, etc.).

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The selection and definition of marketing communication mix (identification of activities
and means of communication) for specific target groups

Advertising (Advertising)

The goal is to create a whole, national advertising campaign that will use TV, radio, daily
newspapers and magazines, outdoor advertising, communication with end users, etc. The
entire campaign will be consistent with the focus target group: young people.

TV spot

TV spot is would be primarily intended for young people, but secondary to all other
generations. The focus on youth would be obvious because of the dynamism of the video,
bright colors and music, while at the same time guessing and older because it touches on the
story of tradition, the emotions that the older generation causes BH Telecom.

Radio spot

Based on the TV spot can be done and a quality radio jingle, which would have the
atmosphere and in the third part of the TV spot, a dynamic, cheerful, with a special emphasis
on dynamic and modern life.

Sales promotion

Use heavy sales promotion to entice people to subscribe.

Increase to build andmaintain relationshipswith customers.
Increase to encourage brand-switching.

Personal selling (personal selling)

To the entire recommended marketing communications campaign managed, great importance,

we must add personal sales as an element of communication. Every successful business in
general successful, companies must develop with clients profitable relationship (relationship -
which is the essence of personal sales).

There are two very important segments of personal selling in which we are based, namely:

retail sales or trade (trade selling)

bussines to bussines sales (Business-to-business selling)

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BH Telecom has a sale of products like mobile phones, TV sets, but only for persons who
have signed a contract for a service package. Primary goal of bussines to bussines sales is the
development of good relations with the targeted organizations such as companies, NGOs, etc.

Campaign budget

Zakup medija elektronski i printani mediji 108 750 KM

Oglaavanje 95 725 KM

Total 204 475 KM

For media buying, we need 108,750 KM and that we account for the lease of space in
electronic and printed Int. Quarterly during prime time on BHT 1, FTV, RTRS, NTV Hayat
and OBN and TV Pink (97 920 KM), and the radio BH radio 1, radio 202, NES radio, radio
EAST SARAJEVO and Kalman Radio (4985 KM). Among print media, we selected the
following daily newspaper Dnevni Avaz, Osloboenje, Nezavisne Novine, Dnevni List
(whole or half color pages) and the following weekly magazine BH Dani, Slobodna Bosna,
Reporter, marc - whole or half color pages (5870 KM).

As for the advertising that should be included to create a TV spot of 30 "and its installation on
the 3 versions of 10" with a final figure of 29,830 KM. There is also a creation of radio spots
and two versions of the 10 'with a price to 1950 KM. Following the billboard posters in
Sarajevo, Mostar and Banja Luka with a price of 20,970 KM, and city light boards in all cities
with a price of 40,770 KM. For print we need 1125 KM for Billboards (125 KM for one.), for
the CITY LIGHT 1080 KM (30 KM for one.)

PROPOSAL FOR WAYS OF CONTROL AND EVALUATION OF RESULTS

Monitoring and control

That could adequately measure the degree of realization of the set objectives, it is necessary in
some way to control and monitor the campaign.

It would be good if the BH Telecom hired one person who would work as a "controller
Marketing".

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This person should take into account the achievement of plans profit, keep tight control of
expenditure for the media to advise optimal scheduling strategy, evaluate the success of the
promotion, to compare spending on media with the realized profits and others.

This person should, after application of marketing campaigns, measure and its impact on the
target public. This should include testing and target public knows about you / and if he
remembers our propaganda, he most remembers how he experienced the message, as well as
on its previous and current positions

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